The initial public offering (IPO) for ECOS (India) Mobility & Hospitality Limited opened for subscription on August 28, 2024, and will be available until August 30, 2024. Here’s a simplified rundown of the important details from the Red Herring Prospectus (RHP) that investors should be aware of before making an investment decision.
1. Subscription Details
The IPO is open for subscription from August 28, 2024, to August 30, 2024. The price range for ECOS Mobility shares is set between ₹318 to ₹334 per share. Investors need to buy a minimum of 44 shares per lot, meaning the minimum investment required is ₹14,696.
2. Objectives of the IPO
The ECOS Mobility IPO aims to raise ₹601.20 crore, all through an offer for sale (OFS) of 1.8 crore shares. This means the company itself will not receive any proceeds from the IPO; the money will go directly to the selling shareholders.
3. Lead Managers and Registrar
Equirus Capital Private Limited and IIFL Securities Ltd are the lead managers for this IPO. The registrar handling the issue is Link Intime India Private Ltd.
4. Allotment and Listing Dates
The allotment of shares is expected to be completed on Monday, September 2, 2024. The company plans to list on the BSE and NSE on Wednesday, September 4, 2024.
5. Promoters
The main promoters of ECOS Mobility include Rajesh Loomba, Aditya Loomba, Nidhi Seth, Rajesh Loomba Family Trust, and Aditya Loomba Family Trust.
6. Key Risks
One of the key risks for ECOS Mobility is the need to maintain high service standards as per their contracts. Any failure, such as late arrivals, mechanical issues, or driver behavior problems, could result in penalties ranging from ₹100 to higher amounts for serious issues. These could lead to cancellations and harm the company’s reputation.
7. About the Company
Founded in February 1996, ECOS (India) Mobility & Hospitality Limited specializes in chauffeur-driven car rentals. The company’s main business areas are employee transportation services (ETS) and chauffeured car rentals (CCR).
8. Financial Performance
For the fiscal year ending March 31, 2024, ECOS Mobility saw a 43% increase in net profit and a 34% rise in sales compared to the previous year.
9. Competitors
ECOS Mobility’s listed competitors include Shree OSFM E-Mobility Ltd and Wise Travel India Ltd.
10. Grey Market Premium (GMP)
Currently, the Grey Market Premium for ECOS Mobility shares is +₹160. This means that the shares are expected to list at around ₹494, which is a 47.9% premium over the issue price of ₹334.
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